A cut in the level of subsidies for on-shore windfarms has been welcomed by Montgomeryshire MP Glyn Davies.
The UK Government this week confirmed it will reduce the amount it subsidises the generation of on-shore wind energy in favour of off-shore generation.
Wind energy has been a hugely controversial issue in Montgomeryshire, with campaigners opposing the large scale construction of windfarms and the associated grid infrastructure.
A public inquiry to determine the fate of five large windfarms is currently being held in Welshpool.
The cut means the amount companies receive for generating wind energy will be cut by £5 per megawatt hour from 2015 onwards.
Companies will now receive £95/MWh in 2015/16 and 90/MWh in 2017/18.
Mr Davies MP said he backed the decision to improve the amount of subsidy for off-shore wind developments.
He said: “My own view is that subsidies to onshore wind have been too high and the reality is there would be a windfarm on every hilltop in Mid Wales if planning could be secured for them. But with off-shore, where the long term potential is greater, profit is very marginal.
“I greatly welcome the move and it is the right thing to do in the national interest.”
Mr Davies said he would now be looking to see how the cut will affect projects planned for Mid Wales.
However the body which represents the wind energy industry, Renewable UK, said the cut was ‘unwelcome’ and warned that small community schemes will suffer.
Deputy Chief Executive Maf Smith said: “If this cut has been made for political reasons rather than economic ones that would be a worry.
“All politicians need to understand that uncertainty spooks investors and it is the consumer who bears that cost. Voters support the development of on and offshore wind, so we now need a period of calm and consistency from Government.”
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